The Czech Republic has postponed the required implementation of electronic cash registers for VAT, known as E-tržby (‘e-sales‘, Czech abbreviation: EET).
The EET cash registers used to combat VAT fraud in retail, catering, and lodging will be rolled out in two phases. The new deadline for mandatory implementation is Jan. 1, 2023.
Catering and lodging had previously been postponed during phase 1. The retail and wholesale industries are now impacted by this additional delay. A third and subsequent wave will include all other consumer businesses, such as transportation. The system is now fully functioning, and firms may begin using it on an opt-in basis. The postponement reflects the significant disruption caused to companies by COVID-19.
WHAT IS EET?
EET is mostly applicable to cash, meal vouchers, gift cards, and similar forms of payment. Bank transfers, credit/debit card payments, and receivable setoffs, on the other hand, do not need registration (with some limitations). EET transmits all transaction records to the financial administration through the internet in the form of an.XML file. This is accomplished via a cash register, a personal computer, or a mobile phone application.
The transaction is subsequently assigned a unique transaction code for inclusion on the receipt. It records all transactions – not just those involving cash – including those using credit cards and vouchers. This data may then be automatically compared to VAT returns to assist in detecting and eradicating fraud. Due to the continuing COVID-19 situation, the Czech Republic (Czechia) has delayed the launch of its online VAT cash registers until January 2023.
In 2019, E-tržby or EET certified registries began to be implemented. The trend began with hotels and restaurants (catering). The third and fourth stages dealt with all other shopper interactions, including transportation. All firms now have the option of ceasing reporting. It does not apply to foreign entities. This data may then be automatically compared to VAT returns to assist in detecting and eradicating fraud.
ADDITIONAL VAT UPDATE
Czech’s Chamber of Deputies approved on 14 December 2021 Bill no. 94, which amends the Czech Constitution to implement EU rules on excise taxes and VAT. The law contains provisions for transposing the EU’s shared VAT system for military goods.